Empowering Black Entrepreneurship and Advancing Women's Equality
Remarks from Dr. V Brooks Dunbar on Women’s Equality Day, August 26, 2024
In considering the state of Black entrepreneurship and women's equality today, it's important we understand our historical background, (where we are coming from) and identify meaningful steps forward, (where we are going to). In this light, it is important we reframe how we look at opportunity versus equity as what is possible for Black women in business and society.
Recently, there has been much excitement about the potential for historic breakthroughs, such as the possibility of the first Black female president in the United States. These milestones reflect a broader societal shift toward recognizing the importance of diversity, equity, and representation at all levels of leadership. However, there are still hindrances and barriers surrounding women, and most critically Black women, particularly in the realm of economic empowerment and entrepreneurship.
The Journey to Entrepreneurship
My own journey as a three-time entrepreneur underscores the challenges and opportunities for Black women seeking economic equity through entrepreneurship. From my early days in college, I knew I wanted to be an entrepreneur. I started my career at State Farm Insurance, knowing full well that this was a temporary step designed to pay off my student loans and build savings for launching my first marketing company.
As I moved through various stages of my education and professional life, earning a Master's in Public Affairs and a Doctorate in Management with a focus on Crisis Management, I applied my skills to help organizations pivot during the COVID-19 pandemic. This experience has only deepened my commitment to helping women achieve economic equity, not just opportunity.
Understanding the Economic Landscape
It is important we understand some stark realities around the income of an average African/American woman as compared to the income of everyone else. In 2020 the median wage for a Black woman in the United States was around $31,500, compared to $39,500 for white women and $54,000 for white men. Even more striking is the net worth disparity: sources vary, but show the median net worth for a single Black woman is only $1,700, while for a Black man it is around $10,000. When it comes to savings, the average Black woman has just $100 set aside.
These figures are troubling, particularly when we consider the broader context. Since the Reconstruction era, the Black community's share of the nation's wealth has remained very small, increasing by only half a percentage point to under 1.5% today. This slow progress reflects deep-seated inequities in the economic system that persist despite many individual successes.
Learning from History: Pioneers in Black Female Entrepreneurship
It's crucial to highlight historical figures who paved the way for Black female entrepreneurship and economic equality. Maggie L. Walker, the first African-American woman to open a bank in Richmond, Virginia, demonstrated the power of financial independence and innovation. Her bank thrived, increasing its revenue year-over-year, and remains a testament to the resilience and capability of Black women in business.
Similarly, Sadie Tanner Mossell Alexander, the first African-American woman to earn a Ph.D. in economics, focused on Black women's labor and their economic contributions. Her research revealed that many women, especially Black women, often gave away their labor for free or accepted minimal compensation. This pattern persists today, with many women undercharging for their services or being hesitant to invoice for their work, reflecting a lack of self-valuation.
From Opportunity to Equity
While much of the discourse around Women's Equality Day centers on social and political rights, economic equity is where the most significant gaps remain. Opportunity, as it is often defined, merely opens doors; equity, however, involves achieving true economic power. It is not enough for Black women to gain access to spaces—they must have the means and resources to thrive within them.
Opportunity is about access, while equity is about power—the power to shape one's destiny, to build wealth, and to create sustainable enterprises. This is the distinction that we need to make: moving from mere opportunity to a world of equity for Black women.
Entrepreneurship: The Gateway to Equity
For Black women, entrepreneurship is the most direct path to achieving equity. Since 2012, Black women have led the way in new business startups, motivated by the desire to build something of their own and create economic value. However, despite being the fastest-growing group of entrepreneurs, Black women-owned businesses tend to have the lowest average receipts. Ninety percent of women entrepreneurs, across all demographics, earn less than $100,000 annually, illustrating the broader challenges of achieving financial success through entrepreneurship.
Yet, entrepreneurship remains a powerful tool. It allows women to reclaim their labor's value, create their own opportunities, and build generational wealth. This was particularly evident during the COVID-19 pandemic, when over 600,000 women left the workforce in a single month to start their own businesses. This mass exodus from traditional employment highlighted the desire for greater autonomy, flexibility, and self-determination.
The Future of Black Female Entrepreneurship
While diversity, equity, and inclusion (DEI) initiatives have gained traction in recent years, they are not a complete solution. The focus on "opportunity" within these programs often falls short of addressing the systemic barriers that prevent true equity. For Black women entrepreneurs, the emphasis needs to shift towards building businesses that offer real power and control over economic outcomes.
Recent developments, such as the growth of crowd-funding platforms specifically designed for Black entrepreneurs, provide new avenues for raising capital and expanding businesses. These platforms help bridge the gap between opportunity and equity by providing access to funds that were traditionally hard to obtain. They also create new networks and opportunities for collaboration and growth.
Conclusion: Building a Future of Equity
As we look forward to the future of Black female entrepreneurship, we must focus on building equity rather than settling for opportunity. This means creating and supporting initiatives that empower Black women to build their own enterprises, access capital, and participate fully in the economic landscape.
By leveraging technology, fostering community support, and advocating for policy changes, we can create an environment where all women in business are not just surviving but thriving. The goal is to transform our communities by developing a robust ecosystem that values female entrepreneurs for their full worth.
The path to economic equity is long and challenging, but it is a journey worth undertaking. It is not just about lifting individual women but about uplifting entire communities and reshaping the future for generations to come. In the pursuit of economic equity, we can create a more just and equitable society where all women have the power to achieve their fullest potential.
My notes only:
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